U.S. Treasury Secretary Scott Bessent announced on Sunday that the administration plans to sanction another bank this week as part of an aggressive campaign to economically isolate Iran. The move follows a six-month mark in the ongoing war and includes pressure on international trading partners during Group of 20 meetings in Asheville, North Carolina.
President Donald Trump’s administration is escalating its economic pressure campaign against Tehran, pairing military strikes with targeted financial penalties. U.S. Treasury Secretary Scott Bessent outlined the strategy during a Sunday interview ahead of Group of 20 meetings in Asheville, North Carolina, where he is meeting individually with international counterparts.
The financial crackdown marks a pivot from military strikes to economic pressure as the conflict between the United States and Iran reaches its six-month milestone. Bessent pulled no punches regarding the White House’s intent to sever foreign banking ties with the Iranian regime.
“This is going to be financial violence if we have to,” Bessent said in the interview. “We are showing people that we know who you are, you know who you are, and this has got to stop.”
Scott Bessent, U.S. Treasury Secretary
Strait of Hormuz Clashes and the New Economic D-Day
The diplomatic push in North Carolina coincides with renewed fighting in the Middle East. On Sunday, U.S. forces struck Iranian rocket launchers on the Strait of Hormuz. The engagement broke a month-long lull in fighting, prompting Tehran to vow retaliation for what it characterized as a deadly attack.
Administration officials describe the broader financial offensive as an economic D-Day
directed at a nation that has already endured decades of punishing sanctions. Rather than relying solely on warnings, the Treasury Department is moving against foreign institutions accused of sustaining Iran’s leadership.
Targeting Banque Misr and International Enablers
The Treasury’s first official action in this intensified campaign materialized through a proposed rulemaking announced Friday. The measure targets the Emirati branches of Banque Misr, Egypt’s second-largest bank, aiming to sever them from access to the U.S. financial system over allegations that the institution served as an economic lifeline to Tehran.
Egypt’s foreign ministry and central bank confirmed they are communicating with U.S. officials regarding the rulemaking. According to a statement issued by the Central Bank of Egypt, the measure is strictly limited to the bank’s branches in the United Arab Emirates and specifically applies to its dollar transfers. The central bank emphasized that operations inside Egypt and other overseas branches remain unaffected, affirming the overall resilience of the country’s banking sector.
Concurrently, the Treasury Department posted new sanctions on its Office of Foreign Assets Control website targeting the manager of Iran’s Bank Melli Dubai branch alongside a Hong Kong-based firm accused of laundering funds for Iran.
Weighing Retaliation Against Major Trading Partners
By stopping short of imposing sanctions directly on the Egyptian bank, the administration appeared to signal a reluctance to penalize major trading partners that maintain commercial ties with Iran. This balancing act raises questions regarding China, Iran’s biggest trading partner and leading buyer of oil.
Bessent addressed potential actions against Beijing directly, stating that all options are on the table regarding sanctioning Beijing for continued oil purchases. He rejected the notion that the administration is reluctant to confront China, dismissing reports to the contrary as a completely false narrative that the media picked up on.
Bessent insisted that Washington and Beijing share aligned interests in keeping the Strait of Hormuz open and blocking Iran from acquiring a nuclear weapon.
What Lies Ahead for Global Financial Networks
The proposed rule targeting Banque Misr UAE is subject to a 30-day public comment period before it takes effect. Treasury officials maintain that foreign enablers of the Iranian state can no longer expect safe passage through western banking channels.
“The Trump administration warned that Iran’s enablers cannot continue to enjoy access to the U.S. dollar and the global financial system,” Bessent said in a statement Friday. “Banque Misr UAE decided to find out the hard way, and today, we are taking the first step in holding it accountable for its continued, egregious support of the Iranian regime.”
Scott Bessent, U.S. Treasury Secretary
As G20 meetings continue in North Carolina, international finance ministers face pressure from Washington to choose between global dollar access and continued financial commerce with Tehran.
